EXECUTIVE SUMMARY

As a progressive employer who belives equality is one of the key pillers of a successful business, we are aiming to be one of the first to comply with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, which shows:

  • A mean gender pay gap of 12.8% (compared to UK average of 18.1%) which drops to 4.2% when anti-social hours working allowances are excluded.
  • A median gender pay gap of 11.1% which drops to -4.5% when anti-social hours working allowances are excluded.
  • A mean bonus gender pay gap of 92%.
  • A median bonus gender pay gap of 91.3%.
  • 9% of females received a bonus payment (8.6% of females eligible to participate in a scheme), compared to 5.2% of males received a bonus payment (9.2% of males eligible to participate in a scheme).
  • The proportion of each gender in each quartile pay band
QuartileLowerLower middleUpper middleUpper
Female25.0%3.9%6.5%10.5%
Male75.0%96.1%93.5%89.5%
  • When excluding anti-social hours working allowances 37.1% of females employed are in the upper pay quartile compared with only 23.2% of males.

DECLARATION

I hereby confirm that the information provided in this report to be accurate.

 

John Cooper

CEO

5 June 2017

 

INTRODUCTION

Interfloor Limited is required by law to carry out Gender Pay Reporting under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.  Whilst reporting must be complete by end of March 2018, as a progressive employer who believes fairness in all we do is one of the core foundations to our business approach, we have decided to report as quickly as possible after the relevant pay period has expired, which for Interfloor was 30 April 2017.

The requirement involves carrying out six calculations that show the difference between the average earnings of men and women in our organisation.  We can use these results to assess:

  • the levels of gender equality in our workplace
  • the balance of male and female employees at different levels
  • how effectively talent is being maximised and rewarded.

The challenge for Interfloor and across Great Britain is to eliminate any gender pay gap.

GENDER PAY GAP CALCULATIONS

1. The Mean Gender Pay Gap

Mean averages are useful because they place the same value on every number they use, giving a good overall indication of the gender pay gap, but very large or small pay rates can dominate and distort the answer.  The mean gender pay gap for April 2017 was 12.8%, much lower than the UK average for all employees of 18.1% in 2016.

The Company offers a salary sacrifice Self-Invested Pension Plan to all employees and the gender gap is calculated post-sacrifice, interestingly pre-sacrifice the gap reduces to 12.5% as female employees are more likely to maximise the pension investment opportunity, 81% of female employees are full scheme members compared to 66% of male employees.

Our analysis of comparable roles shows that we reward men and women fairly for similar work.  There are 2 key drivers behind the mean gender pay gap, the largest of those being shiftwork.  As a traditional manufacturing Company 66% of all employees work shiftwork, 98% of whom are male, and who receive an additional allowance which is not related to their value to the business but is compensation for anti-social working hours.  Any women working these shift work patterns would receive exactly the same remuneration.  Excluding shift working allowances from the calculation bring the mean gender pay gap significantly down to 4.2%.  Whilst there is no occupational reason for male dominance in this role we have found it extremely difficult to attract females to manufacturing roles.

The second key driver reflects the lower representation of women at senior levels within the organisation and especially our difficulty in recruiting women in operations, technical and engineering disciplines.

2.The Median Gender Pay Gap

Median averages are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation and are not distorted by very large or small pay rates.  The median gender pay gap for April 2017 was 11.1%.

Once again shift working allowances were the key driver in the gap and excluding these anti-social working payments the gap was actually -4.5% (i.e. the middle paid female was paid more than the middle paid male).

As a median the lower representation of women at senior levels within the organisation is much less pronounced.

3.The Mean Bonus Gender Pay Gap

Whilst this can be a good measure where bonus payments are common across an organisation, large or small bonus payments can dominate and distort the answer where such payments are not prevalent across the business, which is the case for Interfloor.  The mean bonus gender pay gap for the 12 months to 5 April 2017 was 92%.

Firstly bonus schemes within Interfloor are limited to Senior Management as well as UK and Export Sales functions which make up only 9% of the workforce, secondly bonus payments in 2016/17 were earned in our FY 2015/16.

The key driver of the gap is again twofold, firstly the lower representation of women at senior levels within the organisation, secondly the very limited achievement of bonus payments across the UK and Export Sales functions where there is more female representation.

4. The Median Bonus Gender Pay Gap

The median bonus gender pay gap was 91.3% for the 12 months to 5 April 2017, generally for the same reasons as the mean gap above.

5. The Proportion of Males & Females Receiving a Bonus Payment

As achievement of bonus payments is based on various business performance metrics, the proportion of those who receive a bonus payment can be skewed from those who were eligible to participate on a bonus scheme.  For the FY2015/16, payments for which were made in 2016/17, 2.9% of females received a bonus payments of the 8.6% of females eligible to participate in a scheme, compared to 5.2% of males received a bonus payments of the 9.2% of males eligible to participate in a scheme.

6. The Proportion of Males & Females in Each Quartile Pay Band

The proportion of each gender in quartile pay bands for April 2017 shows:

QuartileLowerLower middleUpper middleUpper
Female25.0%3.9%6.5%10.5%
Male75.0%96.1%93.5%89.5%

As female employees only account for 11.4% of the workforce this can be partially misleading, the dispersion of each gender across the same pay quartiles shows:

QuartileLowerLower middleUpper middleUpper
Female54.3%8.6%14.3%22.9%
Male21.0%27.3%26.6%25.1%

As outlined above, allowances paid entirely for anti-social working patterns and not related to the value of the role or person within the organisation skews our figures badly given the high proportion of shiftworkers and difficulties in recruiting females to these operations roles.  Excluding shift allowances the proportion of each gender in quartile pay bands is quite different:

QuartileLowerLower middleUpper middleUpper
Female19.7%1.3%7.8%17.1%
Male80.3%98.7%92.2%82.9%

And more interestingly the dispersion of each gender across the same pay quartiles excluding shift allowances shows:

QuartileLowerLower middleUpper middleUpper
Female42.9%2.9%17.1%37.1%
Male22.5%28.0%26.2%23.2%

 

ACTION PLAN

Recruitment & Retention

Unfortunately fewer women study and work in science, technology, engineering and maths [STEM] disciplines in the UK which form a large part of our organisation.  In the medium to longer terms our aim is to recruit/develop more female employees into our operations focused functions as well as our Senior Management Team, this process began in January 2016 with the appointment of our first female member of the Company Management Team in the role of Head of Marketing.

In order to achieve this aim we will:

  • Support national activities from Government and education/training providers to encourage increases in female participation in STEM subjects.
  • Review our recruitment & retention strategies to ensure they focus on attracting female talent in key areas.
  • Continue to attempt to break down the stereotypical barriers and beliefs that traditional manufacturing should be a male dominant environment.
Bonus Systems

A review of our bonus systems has shown that whilst there was a skew in the payments received in 2016/17 the proportions of each gender entitled to participate for these payments were broadly equal at 8.6% of females and 9.2% of males.  Bonus schemes for FY2016/17, payments for which will be made in 2017/18 and thus reported in the 2018 Gender Pay Gap report, have already progressed significantly with regards to participation at 11.4% of female employees against only 8.5% of male employees.  This is further enhanced due to a one-off major project which actually sees 22% of female employees eligible to participate in a bonus scheme for the year compared to 10% of male employees.

Pay Systems

In determining pay and reward for our employees we balance a number of factors, including the economic climate, company performance as well as external market for the  roles that we offer.  Whilst our reward systems have always ensured full compliance with equal pay, we intend to integrate gender pay gap considerations into future reviews of pay and reward.